Panama’s President Juan Carlos Varela announced late on June 12 his intention to break diplomatic relations with Taiwan in exchange for recognition from China. [...] Taiwan’s formal diplomatic relations are particularly susceptible to Chinese offers of aid and investment. For decades both Beijing and Taipei were accused by the other of engaging in “dollar diplomacy” or “checkbook diplomacy,” where various forms of international aid appear tied to switching diplomatic recognition.

Taiwan's health minister on Monday accused China of playing politics with health after Taiwan was blocked from taking part in the annual meeting of the governing body of the World Health Organization for the first time since 2008. Health and Welfare Minister Chen Shih-chung lashed out at China's actions, which Beijing said was taken because Taiwan's year-old government has reneged on the "One China" principle.

Perhaps less apparent is the fact that the multiple dimensions of Beijing’s coercive diplomacy have been complemented by the Communist Party of China’s renewed utilization of people-to-people relations in order to advance political objectives.

In a recent study that elicited the views of mainland Chinese tourists to Taiwan, the researchers show that the increase in tourism between the two places has already had a positive influence on the “long-term peace-building effort” and that it will “facilitate political reconciliation and mutual recognition” in the future.